Current assets for JC Inc. totalled $100,000, and the current ratio was 1.5. Assume that the...

 

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Current assets for JC Inc. totalled $100,000, and the current ratio was 1.5. Assume that the following transactions were completed in sequence: (1) paid $6,000 for merchandise purchased on short-term credit. (2) purchased a delivery truck for $20,000 cash. (3) wrote off a bad accounts receivable for $1,000. (4) paid previously declared dividends in the amount of $20,000. Required: Assume that the allowance method is used for write off, compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Transaction (3) Transaction (4) Current ratio 5,300.00 Current assets for JC Inc. totalled $100,000, and the current ratio was 1.5. Assume that the following transactions were completed in sequence: (1) paid $6,000 for merchandise purchased on short-term credit. (2) purchased a delivery truck for $20,000 cash. (3) wrote off a bad accounts receivable for $1,000. (4) paid previously declared dividends in the amount of $20,000. Required: Assume that the allowance method is used for write off, compute the current ratio after each transaction. (Round the final answers to 2 decimal places.) Transaction (1) Transaction (2) Transaction (3) Transaction (4) Current ratio 5,300.00

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Lets calculate the current ratio after each transaction 1 Transaction 1 Paid 6000 for merchandise pu... View the full answer